The EIU view

The 2017 vote produced a fragmented result, with the People's Party for Freedom and Democracy remaining the largest party. Following protracted talks, a centre-right coalition came to power in October, but it rests on only small majorities in both houses of parliament and is thus vulnerable. The recovery accelerated spectacularly in 2017, with growth above 3%, but we expect the momentum to soften and for real GDP growth to average 2.6% in 2018-19.